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I use part of my home for business and use the simplified method. I have a small business loss for 2020 before I even get to the home office deduction. This hasn't happened in quite a while and I'm wondering what the current rules are. I'm not inclined to research this too deeply unless I can carry some of the deduction forward without wasting more time on doing so than its worth. My gross income from business use of my home was greater than my home business deduction.
Last edited by Deserterer; 03-29-2021 at 09:45 AM..
I use part of my home for business and use the simplified method. I have a small business loss for 2020 before I even get to the home office deduction. This hasn't happened in quite a while and I'm wondering what the current rules are. I'm not inclined to research this too deeply unless I can carry some of the deduction forward without wasting more time on doing so than its worth.
Even though you don't want to do it, you SHOULD read the rules pertaining to a business use of a portion of your personal residence. Several years back (10-15 years???), IRS tightened up the rules/requirements for business use of a portion of a primary residence due to the blatant abuse of the rules. It's now much tougher to qualify.
It would be even tougher, IMO, if you want to claim a loss while using this provision of the code. It shouldn't take more than a few minutes to look it up and read the applicable sections. It may prove very beneficial to you going forward. It's always good to know the rules of the game you're playing.
Even though you don't want to do it, you SHOULD read the rules pertaining to a business use of a portion of your personal residence. Several years back (10-15 years???), IRS tightened up the rules/requirements for business use of a portion of a primary residence due to the blatant abuse of the rules. It's now much tougher to qualify.
It would be even tougher, IMO, if you want to claim a loss while using this provision of the code. It shouldn't take more than a few minutes to look it up and read the applicable sections. It may prove very beneficial to you going forward. It's always good to know the rules of the game you're playing.
I have no desire to make my life or taxes tougher. Since I already have a loss I'd be perfectly content to not even claim the home business deduction for last year, even though I meet the requirements, if there's no real benefit or reason to do so.
And don't worry, I'd double check the rules about whatever anyone suggested here. Just looking for a quick insight or overview from those who already know them.
There is nothing hard or complicated about using the simplified method of deducting a home office. Simply enter that number on your schedule C just as you would any other expense, the loss for your business will get a bit bigger, and it will shield some portion of your other income from taxes.
If you are already using the home deduction, it isn’t going to increase your risk of audit, which is what most people fear.
Whether or not you qualify for a home office deduction is another matter entirely, and a topic that gets brought up by one poster or another every time home deductions are mentioned. I work on the assumption that if you are taking it, you qualify.
There's no doubt that I qualify for the home office deduction but that's not the issue.
As for it shielding me from other taxes I don't see how it can unless I did something wrong. Using the simplified method worksheet, -145.00 business income (loss) on line 29 and $875 for home office I come up with a big fat 0 for Line 30 on my Schedule C. Wouldn't surprise me if I made an error, but this is in line with my expectation that I can't use the home office deduction if I already have a loss.
I use part of my home for business and use the simplified method. I have a small business loss for 2020 before I even get to the home office deduction. This hasn't happened in quite a while and I'm wondering what the current rules are. I'm not inclined to research this too deeply unless I can carry some of the deduction forward without wasting more time on doing so than its worth. My gross income from business use of my home was greater than my home business deduction.
Too bad she doesn't tell you how, or give you any useful information about it. I think she assumes everyone uses TurboTax and that TurboTax will tell you how.
As someone who has run his business out of his home for twenty years and has a CPA for a wife, I wouldn't do it. Too many complications, too many ways to get dinged.
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